regulation in developing countries.

limited commitment.

• agreed.

• delayed implementation for 16 months then cancelled.

• investor confidence undermined.

• regulator unpredictability and inability to stick to long term promises.

• high regulatory risk

• under investment.

limited regulatory capacity.

WorldLink Telecom.

regulators consistently applied inconsistent levies and reverse decisions.

• shows weak expertise and incomplete contracts.

• regulatory uncertainty.

how does political instability lead to limited accountability?

• when governments change frequently, nobody can be held responsivel for regulatory outcomes.

• politicians may prioritise avoiding protests and appeasing the interest groups.

• when institutions are unstable, firms can more easily influence regulators.

limited fiscal efficiency.

governments cannot fund subsidies, information rents. may force regulators to allow higher prices.

how does regulation in developing countries lead to greater regulatory risk?

• rules change a lot.

• political instability undermines credibility.

• may lead to under investment.

what is the main difference between regulation priorities in developing countries?

• regulation now focusing on access and infrastructure rather than efficiency.

• they prioritise access and basic service provision.

what happens in the context of the energy market?

• energy sector is highly technical and long term.

• may have sudden tariff changes and under-recovery of costs.

• tax rules may change mid project.